Hungary has become a key production base for automotive majors such as Audi, Daimler (Mercedes-Benz), Suzuki and General Motors.

Hungary

The Hungarian machinery sector is mainly focused on the production of agricultural machines and machines used by the automotive industry.

Hungarian agriculture output has increased, leading to rising demand for machinery.

In the automotive segment machinery businesses cooperate closely with international car producers. Hungary has become a key production base for automotive majors such as Audi, Daimler (Mercedes-Benz), Suzuki and General Motors.

Machinery sales only rose slightly in January-April 2015. However, sales prices have increased by more than 10% since June 2014, and order amounts are also higher. Therefore we expect profit margins to improve further in the coming months.

In general the gearing of businesses in this sector is low, and banks are generally willing to provide loans.

The average payment duration in the machinery industry ranges from 30-60 days. Payment delays are low, and expected to decrease further in the coming months. Insolvencies are low and not expected to increase in 2015.

Due to the good growth prospects and low credit risk our underwriting stance is relaxed for all subsectors.